An estimated 30 million NRIs, living in 130 countries, are sending remittances back to India regularly. According to the World Bank, India continues to retain the top slot in remittances by expatriates from abroad.

Remittances are likely to touch 4 58 billion
For 2011, NRI remittances are likely to touch 4 58 billion against China’s 4 57 billion. In 2010, India received 4 54 billion in foreign exchange remittances , three percent of India’s GDP, beating China’s 4 53 billion.

Real estate is preferred
The rupee depreciation and West Asian currencies linked to dollar which is appreciating against the rupee are major driving forces that resulted in a surge in remittances to India. The remittances are mainly used for family needs and investments in stocks, property and term deposits. Real estate here is preferred because of a desire to create a higher lifestyle for the family and the price appreciation in the long term.

Trend is going to pick up in the coming months
Though there was an interim sluggishness in NRI investments, industry experts feel the trend is going to pick up in the coming months due to the uncertainty prevailing in the global economy and the attractive investment opportunities offered here. There are opportunities opening up for developers in new markets such as Mauritius. This is ample proof of the surge in NRI investments in real estate.

NRIs get almost all the privileges
An Indian citizen who resides outside India is permitted to acquire property in India other than agricultural, plantation property and farmhouse. NRIs get almost all the privileges that residents have while investing in real estate.

What can NRI’s purchase in India?
They can acquire, inherit, transfer and gift residential or commercial property. The purchase can be made through funds remitted to India through normal banking channels or funds held in certain types of accounts maintained in India. They can get home loans, mortgage loans and loans against future rental income.

How much can NRI’s remitt outside India
While sale proceeds up to two residential properties can be repatriated after a lock-in period of three years, there is no restrictions on commercial property. Up to one million dollars per year from such a sale can be remitted outside India from a non-resident ordinary account. Rental income can be repatriated after payment of tax, wherever applicable.

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Tags: Indian Real Estate, Indian rupee, investment, NRI, remittances, rup

This entry was posted on Sunday, February 5th, 2012 and is filed under Non Resident Indian's (NRI's). You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.